International Logistics

A detailed Summary of International Logistics

Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.

There are two main phases that are important in the movement of materials: material management and physical distribution. Materials management is the timely movement of raw materials, parts, and supplies. The physical distribution is the movement of the firm's finished products to the customers. Both phases involve every stage of the process including storage. The ultimate goal of logistics is to coordinate all efforts of the company to maintain a cost effective flow of goods.

freight is being used, the weight of the packaging must be considered for maximum benefit. Extremely heavy packaging can add thousands of dollars to an air freight bill.

are lost all at once. Certain operations could not sustain long periods of down-time caused by lost goods, which could prove devastating. Additionally, not all countries have adequate

trade-offs that might be inefficient. The advantages of such high efficiency must be weighed against the risk involved.

One of the largest obstacles of international logistics is geography. The distance and manner materials must be shipped is the most important step in international logistics. Transportation infrastructures vary greatly throughout the world. International companies must consider all options before starting any operation in another country. Perhaps a country could have easy access by ship, but no way to transport the goods once on the ground. All available routes into and out of the country must be determined in order to

irregular shipments. Bulk service is contractual for a prolonged period of time. This service is for those needing to ship large quantities on a fairly regular basis. Tramp service is for irregular routes and scheduled as needed. This service would be to destinations liner service normally does not operate, and for large quantities.

Some common words found in the essay are:
Mexico Normally, , air freight, logistics management, total cost, international logistics, total cost concept, concept after-tax, ocean service, systems concept, cost concept, movement raw materials, raw materials, cost concept after-tax, concept after-tax concept, logistics operations,

Approximate Word count = 1385
Approximate Pages = 6 (250 words per page double spaced)

Category: Miscellaneous

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